The topsy turvy state of the Prix de l'Arc de Triomphe market has been thrown into further chaos after Sea The Moon lost his unbeaten record to Ivanhowe in the Grosser Preis von Baden at Baden Baden.

The Melbourne Cup hopes of three other runners also took a battering with Sirius, Lucky Speed and Terrubi performing below expectations.

Sirius did best to finish fifth, seven lengths from the winner, with Lucky Speed ninth and Terrubi, who is bound for David Payne's Sydney stable, last of the 11 runners.

Paddy Power reacted to Sea Moon's defeat by easing him out to 10-1 from 4-1 and promoting last year's winner Treve to the head of betting at 5-1.

The Markus Klug-trained Sea The Moon went into the Group One contest with questions to answer following an injury scare that caused the colt to miss work.

No details of the nature of the problem have been revealed, but when it came to the crunch at the Iffezheim track Sea The Moon was found wanting and went down by three lengths.

Klug did not reveal the source of a "minor setback" that on reflection he and connections of the 1-2 favourite blamed for the defeat

He has every intention of taking Sea The Moon to Longchamp for the Arc in four weeks, believing his charge can return to the level of form that resulted in an 11-length win in the German Derby.

"I was pretty sure that he was not 100 per cent, so it was not a bad performance," Klug said.

"The race was as we expected, and we will run in the Arc."

Ivanhowe will also head to the Arc for which is a 16-1 chance.